Saudis not sure OPEC+ to reach agreement on Russia’s resistance

VIENNA, Dec 7 (PRIME) -- Saudi Arabia is not sure that OPEC and non-OPEC states will be able to reach a final agreement at a meeting slated for Friday due to Russia’s resistance to a significant oil production cut, Energy Minister Khalid Al-Falih said late on Thursday.

“No, I am not sure… I have not met with (Russia’s representatives)… We do not know yet (if Russia finally agrees),” he said.

On Wednesday, the ministerial monitoring committee for OPEC+ deal compliance recommended a further production cut without defining the volumes. On Tuesday, Reuters reported that OPEC and non-OPEC states may postpone the reduction due to Russia’s resistance to a significant cut.

UAE’s Energy Minister Suhail Al-Mazrouei said that OPEC will meet again on Friday before the planned meeting with its allies adding that the reduction will not be the main topic of the discussion.

Al-Falih said that OPEC has not made a final production cut decision. “We are still in talks,” he said.

The minister added that he hoped to have an additional meeting with Russian Energy Minister Alexander Novak on Thursday, but Novak seemed to arrive too late.

Oman’s Oil and Gas Minister Mohammed bin Hamad Al-Rumhi said that he is sure OPEC+ will decide to reduce oil production by at least 1 million barrels per day and that the deal will be prolonged for six months or a year.

Al-Falih confirmed that a 1 billion barrel per day cut remains the core scenario.

In November 2016, OPEC and non-OPEC states including Russia agreed to reduce their oil production to rebalance the market. In 2017, the deal was prolonged until the end of 2018. In June, the participants decided to raise the output by 1 million barrels of oil per day due to a favorable market environment.